Trump and Xi Wait to See Who Blinks First as Trade Fight Heats Up

  • Both sides look to impose political costs with tariff threats
  • Each leader thinks he can win ‘game of chicken’: analyst
Lowy Institute’s Richard McGregor weighs in on President Trump’s trade policies and the U.S. and China trade war. (Source: Bloomberg)
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The leaders of the world’s two biggest economies are waiting to see who backs down after firing the opening shots in a trade war.

U.S. President Donald Trump took aim at China’s plans to dominate strategic technologies Tuesday by slapping tariffs on 1,333 of the country’s products -- from semiconductors to lithium batteries. Chinese counterpart Xi Jinping’s government hit back with proposed levies on key American imports including soybeans and Boeing Co. jets, a tougher response than many expected.